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Aarti Pharmalabs Limited (AARTIPHARM) fair value: what the stock is really worth

As of Nov 9, 2026: fair value (intrinsic value) of Aarti Pharmalabs Limited stock ₹195, price ₹921, that is 78.9% below the price, quality 45 out of 100. Rating: strongly overvalued. Calculated from audited financials with 14 of our 26 valuation models and 37 quality factors, updated daily.

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Healthcare IN · ISIN INE0LRU01027

AP Aarti Pharmalabs Limited logo Some data Nov 6, 2026

Aarti Pharmalabs Limited

AARTIPHARM · NSE
Very expensive, weak quality

Our calculation puts a fair price 79% below what the stock costs today.

Solidly profitable · 10.4% net margin (TTM)
Low debt
Last quarter vs. a year ago: revenue +39%, profit +54%.
Quality 45/100
0.4% dividend yield · Token dividend
Moderate moat 47/100 · thin data
Some data
Fair value ₹194.76 · Strongly overvalued
Weak Growth (revenue 3y −2.2 %/yr in INR)
Negative free cash flow
Trails peers (5/13)
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What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

₹975.00 ₹243.79 Fair Value ₹194.76 Jan 2023 Nov 2026

White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.

How to read this chart

45‑month range ₹243.79 – ₹975.00 · fair‑value band ₹181.30 – ₹213.63 · the ₹921.40 price screens above the ₹194.76 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.

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Company profile

Aarti Pharmalabs Limited, together with its subsidiaries, manufactures and sells active pharmaceutical ingredients, pharmaceutical intermediates, and xanthine derivatives in India and internationally.

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The company offers active pharmaceutical ingredients for various therapeutic areas, such as cardiovascular, anti-asthmatic, anti-cancer, anti-coagulant, anti-diabetic, arthritis, central nervous system agent, skincare, overactive bladder, calcimimetic, decongestant, anti-thalassaemic, analgesic, and ophthalmologic medications.

It also provides contract development and manufacturing services for drug substance projects.

In addition, the company offers intermediates; xanthine derivatives, including caffeine, theophylline anhydrous, aminophylline, etophylline, and theophylline; and acid and allied products, including sulphuric acid, sulphur trioxide, oil, dimethyl sulphate, diethyl sulphate, and sodium vinyl sulfonate.

The company was formerly known as Aarti Organics Limited. Aarti Pharmalabs Limited was incorporated in 2019 and is headquartered in Mumbai, India.

Stock analysis

Aarti Pharmalabs Limited (AARTIPHARM) currently trades at ₹921.40, while our model-based Fair Value estimate is ₹194.76, 79% below the price, so the stock looks overvalued today.

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Valuation

Bull case: the Multiples group reads highest at a median of ₹450.28 per share, and 1 of the 14 models we run sit above the ₹921.40 price.

Bear case: the Dividend Discount group reads lowest at ₹31.38, and 13 of the 14 models stay below the price. Data coverage for this calculation is medium.

Scenario range: ₹181.30 (bear) to ₹213.63 (bull), the price of ₹921.40 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 45/100 (below-average quality), in the Healthcare sector.

Weak Growth: Revenue is shrinking: the last year, the last three and the last five years are all negative.

Aarti Pharmalabs Limited reported revenue of ₹18.2B in FY2026 versus ₹11.9B in FY2022, a compound +11.1%/yr. Reported net income was ₹1.7B in FY2026.

Key figures

Market cap ₹83.6B (≈ $890M) Small · P/E ratio 39.2 · P/S ratio 4.25 · EPS (TTM) ₹23.50 · Dividend yield 0.4% · Net margin 10.4% · Return on equity 8.5% · Return on assets (EBIT) 9.0% (5-year average).

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 47 out of 100 (low confidence).

What moves the price

The share trades about 5% below its 52-week high and 56% above its 52-week low, currently above its 200-day average.

For context, the median of 10 Healthcare peers we cover trades at −27% fair-value upside, at −79%, AARTIPHARM screens richer than that median.

Fair Value models

The price assumes far more growth than our models allow for, so the models scatter widely (₹4.43 to ₹992.86). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear ₹181.30 Fair Value ₹194.76 Bull ₹213.63
Price ₹921.40 · Downside -78.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹12.02 per share) are deliberately not added. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
Residual Income ₹181.30 ₹191.06 ₹206.90 76
EPV ₹171.56 ₹194.76 ₹213.63 74
ROIC Compounder ₹171.56 ₹194.76 ₹213.63 72
All 14 models by family
Earnings-Based
Graham-Dodd ₹131.01 ₹160.13 ₹180.14 67
EPV ₹171.56 ₹194.76 ₹213.63 74
Dividend Discount
Gordon GGM ₹28.14 ₹30.10 ₹32.99 69
DDM Multi-Stage ₹28.14 ₹32.66 ₹38.30 67
Multiples
P/E Multiple ₹317.90 ₹423.86 ₹529.83 63
P/S Multiple ₹245.65 ₹327.53 ₹409.41 58
P/B Multiple ₹744.64 ₹992.86 ₹1,241 55
EV/EBIT ₹336.99 ₹476.69 ₹616.40 65
EV/EBITDA ₹383.84 ₹539.16 ₹694.48 67
EV/Revenue ₹217.01 ₹345.21 ₹473.41 53
Asset-Based
NCAV (Graham) ₹2.93 ₹4.43 ₹5.54 55
Economic Profit
Residual Income ₹181.30 ₹191.06 ₹206.90 76
ROIC Compounder ₹171.56 ₹194.76 ₹213.63 72
Growth Earnings
Growth-Adj P/E ₹224.09 ₹320.13 ₹416.17 67

Open the full fair value analysis →

Quality Score breakdown

Overall quality 45/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 42
How much profit the company makes from its sales and capital
Quality Growth 29
Are margins and returns getting better?
Cashflow 31
Do the profits arrive as real cash?
Financial strength 70
Debt, balance sheet and risk of trouble
Investment 22
Does it invest with discipline instead of growing at any price?
Low Volatility 64
How calm the share price moves, does not count
Price momentum 69
Price momentum of the last 3 to 12 months, does not count
Near the 52-week high 65
Distance to the 52-week high, does not count
New shares 81
Buys back shares or issues new ones?

Open the full quality analysis →

Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 3/100
Revenue is shrinking: the last year, the last three and the last five years are all negative.
Revenue growth 1 year
−14.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−2.2%
What shareholders gained per year (last 3 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 3 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−4.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year−5.3%
Dividend (yield on the price)0.4%
Profit margin 2022 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.0% → 16%

AARTIPHARM screens overvalued: fair value 79% below the price. Compare with Merck KGaA →

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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Drug Manufacturers - Specialty & Generic · 605 stocks

Beats the industry median on 5/13 measures
Overall it trails its industry peers.
Valuation
Quality Score 45 · Below median
Fair Value upside −78.9% · Bottom 25%
Profitability
Return on equity (12 months) 8.5% · Above median
Return on assets 5.0% · Above median
Net margin (12 months) 10.4% · Above median
Operating margin (12 months) 19.2% · Top 25%
Growth and dividend
Revenue growth (quarter YoY) 38.7% · Top 25%
Dividend yield (12 months) 0.4% · Bottom 25%
Balance sheet
Debt / equity 0.09× · Above median

Valuation Multiplesvs Drug Manufacturers - Specialty & Generic median · lower = cheaper

P/E (12 months) 39.2× · Pricier than median
P/B 3.94× · Priciest 25%
P/S (12 months) 4.25× · Pricier than median
EV/EBITDA 19.4× · Pricier than median

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 18
FUTURE (revenue growth)100 · sector 25
PAST (return on equity)34 · sector 25
HEALTH (low debt)96 · sector 96
DIVIDEND (yield)9 · sector 31

VALUE 0: the price sits above our fair-value range.

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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Aarti Pharmalabs Limited: fair value per Fair Value Calculator

Cite: Fair Value Calculator (2026). "Aarti Pharmalabs Limited Fair Value". https://www.fairvalue-calculator.com/stock/AARTIPHARM

Frequently asked questions

Is Aarti Pharmalabs Limited (AARTIPHARM) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of ₹194.76 versus a price of ₹921.40, about 79% lower (overvalued).
What is the fair value of AARTIPHARM?
Our model-based fair value for Aarti Pharmalabs Limited is ₹194.76 (as of Nov 6, 2026), built from audited fundamentals. The current price: ₹921.40.
What is the quality score of AARTIPHARM?
Aarti Pharmalabs Limited has a Quality Score of 45/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Aarti Pharmalabs Limited (AARTIPHARM)?
Our model-based price target is the fair value of ₹194.76 (as of Nov 6, 2026) from 14 valuation models. Cautious scenario ₹181.30, optimistic scenario ₹213.63. It is a calculation from audited fundamentals, not an analyst target.
What is the Aarti Pharmalabs Limited stock forecast for 2026?
Our models put fair value at ₹194.76, about 79% lower versus a price of ₹921.40 (overvalued). Cautious scenario ₹181.30, optimistic scenario ₹213.63. The calculation is refreshed regularly with new filings.
What is the revenue of Aarti Pharmalabs Limited (AARTIPHARM)?
Aarti Pharmalabs Limited reported trailing-twelve-month revenue of about ₹19.7B (latest available figure, as of Nov 6, 2026).
Does Aarti Pharmalabs Limited pay a dividend?
Aarti Pharmalabs Limited currently shows a dividend yield of 0.43% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of Aarti Pharmalabs Limited (AARTIPHARM) and when is the ex-dividend date?
Aarti Pharmalabs Limited pays a dividend of ₹4.00 per share a year, a dividend yield of 0.4%. The last ex-dividend date was Sep 15, 2026. The payout ratio is 17.0% of earnings. Our assessment: Token dividend. At a yield of 0.4% the dividend is symbolic. On paper it is not fully covered by earnings or free cash flow, but at this size that hardly matters: even scrapping it entirely would cost less than 0.4% a year, and coverage ratios on amounts this small swing with ordinary working-capital movements. Judge this company on its business, not on its dividend.
What is the intrinsic value of Aarti Pharmalabs Limited (AARTIPHARM)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Aarti Pharmalabs Limited it is ₹194.76 per share (as of Nov 6, 2026), against a price of ₹921.40. It is the blended result of 14 valuation models in 6 families (Earnings-Based, Dividend Discount, Multiples, Asset-Based, Economic Profit, Growth Earnings).
Is Aarti Pharmalabs Limited stock overvalued or undervalued in 2026?
As of Nov 6, 2026, AARTIPHARM trades above its calculated fair value: price ₹921.40, fair value ₹194.76, a gap of about −79% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of AARTIPHARM?
No. The price is what the market pays today (₹921.40); the fair value is what the company's own numbers justify (₹194.76). For Aarti Pharmalabs Limited the two are ₹726.64 per share apart. That gap is exactly why we show both numbers side by side.
How much is Aarti Pharmalabs Limited worth?
The market values Aarti Pharmalabs Limited at about ₹83.6B (market capitalisation, as of Nov 6, 2026). Per share that is ₹921.40; our models calculate a fair value of ₹194.76 per share.
What do the bullish and bearish scenarios say about AARTIPHARM?
Our models span a range for Aarti Pharmalabs Limited: cautious scenario ₹181.30, base ₹194.76, optimistic ₹213.63 per share (as of Nov 6, 2026, price ₹921.40). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of AARTIPHARM?
Aarti Pharmalabs Limited trades at a price-to-earnings ratio of 39.2 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹194.76 is built from several models across several years. Other multiples: P/B 3.9, P/S 4.2, EV/EBITDA 19.4.
How solid is the balance sheet of Aarti Pharmalabs Limited (AARTIPHARM)?
Balance-sheet figures for Aarti Pharmalabs Limited (as of Nov 6, 2026): return on equity 8.5%, debt of 0.09 per unit of equity. They feed the Quality Score of 45/100, which measures business quality independently of the share price.
How far is AARTIPHARM from its 52-week high?
Aarti Pharmalabs Limited trades at ₹921.40, about 5% below its 52-week high of ₹975.00 and 56% above the low of ₹591.95 (as of Nov 9, 2026). Distance from the high says nothing about value: that is what the fair value of ₹194.76 is for.
Which stocks are comparable to Aarti Pharmalabs Limited?
From the same area (Healthcare) we also value Merck KGaA, Takeda Pharmaceutical Company, Galderma Group, Teva Pharmaceutical Industries Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Aarti Pharmalabs Limited stock attractive at the current price?
The data as of Nov 6, 2026: price ₹921.40, calculated fair value ₹194.76 (−79%), Quality Score 45/100, from 14 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of AARTIPHARM calculated?
We run Aarti Pharmalabs Limited through 14 models from 6 families: Earnings-Based, Dividend Discount, Multiples, Asset-Based, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of ₹194.76 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.1% above its aggregate fair value. Aarti Pharmalabs Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Aarti Pharmalabs Limited (AARTIPHARM)?
The closing price on Nov 9, 2026 was ₹921.40. Our model-based fair value is ₹194.76, about 79% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Aarti Pharmalabs Limited right now?
The price sits above even our optimistic bull case (₹213.63). The favourable scenario is already priced in. Weak quality (45/100) and above fair value at the same time, the margin of safety is missing on both counts.

Key figures of Aarti Pharmalabs Limited

How large is the market capitalisation of Aarti Pharmalabs Limited (AARTIPHARM)?
The market capitalisation of Aarti Pharmalabs Limited is ₹83.6B (≈ $890M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Aarti Pharmalabs Limited (AARTIPHARM)?
The price-to-sales ratio of Aarti Pharmalabs Limited is 4.25 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Aarti Pharmalabs Limited (AARTIPHARM)?
Earnings per share at Aarti Pharmalabs Limited are ₹23.50 (price ÷ EPS = P/E 39.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Aarti Pharmalabs Limited (AARTIPHARM)?
The dividend yield of Aarti Pharmalabs Limited is 0.4% (payout 17.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Aarti Pharmalabs Limited (AARTIPHARM)?
The net margin of Aarti Pharmalabs Limited is 10.4% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Aarti Pharmalabs Limited (AARTIPHARM)?
The return on equity (ROE) of Aarti Pharmalabs Limited is 8.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Aarti Pharmalabs Limited (AARTIPHARM)?
On an EBIT basis the return on assets of Aarti Pharmalabs Limited is 9.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Aarti Pharmalabs Limited (AARTIPHARM)?
The operating margin of Aarti Pharmalabs Limited is 19.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Aarti Pharmalabs Limited (AARTIPHARM)?
Revenue at Aarti Pharmalabs Limited is growing +38.7% versus a year earlier (3y avg −2.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Aarti Pharmalabs Limited (AARTIPHARM)?
Earnings per share at Aarti Pharmalabs Limited are growing +53.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Aarti Pharmalabs Limited (AARTIPHARM) generate?
The free cash flow of Aarti Pharmalabs Limited is −₹1.9B (fiscal year 2026). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Aarti Pharmalabs Limited (AARTIPHARM) carry?
The net debt of Aarti Pharmalabs Limited is ₹7.4B (fiscal year 2026). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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